fb
X
X
Tired?
Unfocused?
Off your game?
Read our free, updated as of Mar 3, 2022, Dr K report on how to optimize your mind and body so you can boost your focus when trading the markets.
YES, SEND ME THE REPORT !
Meet Dr K !
Chris Kacher
  • Nuclear physicist
  • Stock & crypto market wizard
  • Blockchain builder
  • Bestselling author
  • Top 40 charted musician
  • Biohacker
  • Former computer hacker
YES, SEND ME THE FILE !
YES, SEND ME BOTH !
Your email will always remain private.

Market Lab Report - VIX is near decade lows. SELL ?!

 

A number of financial news accounts have mentioned how the market must correct sooner than later because the VIX is trading near lows not seen since 2007. It is true that since 2013, whenever the VIX trades around or below the 11 level, the market would have a correction of some magnitude. 

But keep in mind that the only thing that is constant when it comes to markets is change. Morphing markets are what keeps our lifelong interest as investors. 

In late 2006, the VIX dropped to new near all-time lows. Media accounts back then kept saying the market must correct with the VIX plunging to new lows. Instead, the general market continued the strong uptrend it began in August all the way through December, or five months.

This period marked a confluence of leading names offering numerous pocket pivot and buyable gap up buy points. More than doubling one's account was achievable. My personal trading account netted just over 115% over this period from the opening of positions in August to the closing of final positions in December. 

The current post-election rally has not been nearly as strong as those five months in 2006, but nevertheless, the trend remains up. If the VIX fell all the way down to 9.39 matching the lows it hit in December 2006, this would suggest at least several more weeks left in the life of this uptrend before any material correction. 

Of course, the VIX could drop even further than 9.39 if conditioned warranted. Or, on the other hand, it could indeed spike higher on some negative news which could spur on a market correction.

Watch your stocks. Price/volume action always comes well ahead of trying to predict or "game" the market based on the numerous indicators favored by analysts. So while it's true that the market tends to correct when the VIX trades around or below 11, markets change. And markets are certainly different today than they were prior to the election.

Like what you read?
Let us help you make sense of these markets by signing up for our free Market Lab Reports:
This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
FOR OUR FREE MARKET LAB REPORT :
Copyright ©2024 MoKa Investors, LLC DBA Virtue of Selfish Investing.
All Rights Reserved.
privacy policy